. . . Exhibit 12 SEMCO ENERGY, Inc. Ratio of Earnings to Fixed Charges (Thousands of Dollars) Year Ended December 31, ----------------------------------------------------------------------------------- Description 2003 2002 2001 2000 (b) 1999 (b) - --------------------------------------------- -------------- -------------- -------------- -------------- -------------- Earning as defined (a) Income (loss) before income taxes, divid- ends on trust preferred securities, discon- tinued operations & extraordinary items $ (33,097) $ 27,679 $ 14,942 $ 33,156 $ 25,653 Fixed charges as defined 48,524 45,249 45,855 43,364 21,483 Less preferred securities dividend require- ments of consolidated subsidiaries (6,616) (13,232) (13,235) (7,699) (242) Other items 0 0 0 0 158 -------------- -------------- -------------- -------------- -------------- Earnings as defined $ 8,811 $ 59,696 $ 47,562 $ 68,821 $ 47,052 ============== ============== ============== ============== ============== Fixed charges as defined (a) Interest expense $ 38,701 $ 30,237 $ 30,945 $ 32,637 $ 19,193 Amortization of debt expense 2,300 1,031 839 2,268 1,297 Estimate of interest within rental expense 907 749 836 760 751 Preferred securities dividend requirements of consolidated subsidiaries 6,616 13,232 13,235 7,699 242 -------------- -------------- -------------- -------------- -------------- Fixed charges as defined $ 48,524 $ 45,249 $ 45,855 $ 43,364 $ 21,483 ============== ============== ============== ============== ============== Ratio of earnings to fixed charges 0.18 1.32 1.04 1.59 2.19 ============== ============== ============== ============== ============== Notes: (a) Earnings and fixed charges as defined in instructions for Item 503 of Regulation S-K. (b) The ratio of earnings to fixed charges calculations for years prior to 2001 have been restated to account for the effect of discontinuing the Company's engineering business during the fourth quarter of 2001.